CEF.UP - MaR Seminar/Webinar

Tuesday - May 24th, 2022 at 6:30 p.m. | Room 631|Online

Giovanna Michelon - Bristol University, UK (joint work with Pietro Bonetti and Christian Leuz)

Abstract:

"The rise of shale gas and tight oil development has triggered a major debate about hydraulic fracturing (HF). In an effort to mitigate risks from HF in unconventional development, many U.S. states have introduced disclosure mandates for HF fluids. In this paper, we study the effects of this important regulatory initiative on HF activity and its environmental impact. We find significant improvements in water quality, examining salts that are considered signatures for HF impact after the disclosure mandates are introduced. We document effects along the extensive margin (less HF activity) and the intensive margin (less per-HF well impact). Most of the improvement comes from the intensive margin. Supporting this interpretation, we find that, after the introduction of disclosure, operators pollute less per unit of production, use fewer toxic chemicals, and there are fewer spills related to the handling of HF fluids and wastewater. We also explore possible mechanisms through which disclosure regulation can be effective and find that public pressure likely plays an important role. Taken together, our empirical assessment of a major regulatory initiative for HF provides novel evidence on how disclosure mandates can help to internalize negative and fairly widespread external effects."

Area: Acc & MC

This is a hybrid Seminar, which may be attended either in person or online. The Seminar will take place in room 631. To attend, please submit the survey no later than Monday 23^rd at 4:00 p.m. People wishing to attend online will receive the webinar link on the eve of the Seminar.






“Cef.up is financed by Portuguese public funds through FCT - Fundação para a Ciência e Tecnologia, I.P., in the framework of the project with reference UIDB/04105/2020”